CDS Sovereign

Fitch Solutions says that developed market sovereigns in the Eurozone have driven the rebound in global CDS liquidity after the seasonal lull. Leading the surge are France, Spain and Austria, which have moved up 14, 10 and 10 regional percentile rankings respectively over the past month.

Analyzing the Impact of European Sovereigns’ Collateral Policies

The Association for Financial Markets in Europe (AFME), the International Capital Market Association (ICMA) and the International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of a paper titled The Impact of Derivative Collateral Policies of European Sovereigns and Resulting Basel III Capital Issues.

CMA today released its Sovereign Debt Credit Risk Report (attached) for the fourth quarter 2010, in which it names the top ten most and least risky sovereigns, and the best and worst performers.

This quarter there were few surprises in the list of the top ten most risky sovereigns, with Greece at the top of the table, followed by Venezuela, Ireland and Portugal, and there were no changes to the top eight least risky, although The Netherlands dropped out of the top ten.

The International Swaps and Derivatives Association, Inc. (ISDA) today made the following statement in light of the continued focus on the role of credit default swaps (CDS) in the global marketplace.

ISDA recognizes the concerns of national authorities in managing the volatility in their respective government debt markets and respects the role of financial regulators in taking measures to preserve the stability of their markets.